The Fiji National Provident Fund has entered into an agreement to acquire 25% of Higgins Holdings (Fiji) Pte Ltd (HHFPL) from Higgins Group Holdings Limited (HGHL), a New Zealand entity and a fully owned subsidiary of Fletcher Building Limited (FBL), which is listed in the New Zealand and Australian Stock Exchange.
HGHL has divested 50% of its shares in HHFPL, with the Fund and Fijian Holdings Limited acquiring 25% each.
Under HHFPL, is Fletcher Building (Fiji) Limited (FBFL), which oversees Fletcher’s building construction and road construction projects in Fiji. The Fiji business operates under the Fletcher Higgins brand.
Fund Chief Executive Officer Viliame Vodonaivalu said the Fund has a close relationship with Fletcher Construction – having engaged the renowned company in major construction projects, including the Fiji Marriot Resort at Momi Bay (completed in 2017), Sheraton Hotel refurbishment (completed in 2022) and the renovation of the Westin Denarau Island Resort & Spa which is currently underway.
“This co-investment with strategic partners Fletcher and FHL not only diversifies our investment portfolio but also creates mutual benefits for the Fund in complementing our unlisted property portfolio and development pipeline,” said Mr. Vodonaivalu.
“We are proud to collaborate with Fletcher, a longstanding leader in Fiji’s construction sector since 1971, renowned for their quality and dependable services. With a workforce of 700 Fijians, Fletcher stands as the largest construction company in Fiji, highlighting their corporate strength and reliability in the industry.”
The transaction is expected to be finalized by the end of June 2024, pending regulatory approvals. The Fund believes this investment will contribute significantly to the growth of Fiji’s construction industry and infrastructure, delivering strong returns for FNPF members.